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Citicard - CCS disaster


Vderon
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I have my Citicard in the New Horizon CCS. New Horizon was very slow to pay my two creditors- they would get my money on direct deposit by the 15th, but then not pay the creditors until the 27th or so.

This finally caught up with me, and Citicard charged off my account.

(Nobody called to say that was going to happen).

I was woken up on Saturday by the collection agency- a company called National Enterprise Systems. OF course they want the $13000 that I owe right now. I don't have the funds to settle the account, which is why I went the CCS route to begin with.

Can anyone tell me the right course of action to take? I'm overwhelmed at the prospect of having to deal with Citicard, New Horizon and this collection agency all at the same time.

Thank you in advance!

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New Horizon, like 99% of all credit repair / debt elimination companies are scams. They take your money, promising to do things that you could easily do yourself...and you wind up in worse shape than your were before....as you have seen.

So...first order of business...fire New Horizon. In some states, you might actually be able to get the attorney general involved and get some of your money back. Look into that.

Second...use the DV process on the CA. At the moment, they're the ones you have to deal with. Citibank may be back, but its the CA in front now. Read...read...read...all over this forum to find out how to do that. Remember...the underlying principle is...just because you owed somebody some money doesn't mean NES has the right person, the right account, the right amount, or the right to collect in your state. Make them prove it. At best, it will buy you time. At worst, it will get you sued, but that might happen regardless of what you do. At least, the DV process will probably help you get evidence that might help you in court.

If you don't have funds to give them, settlement is not an option. They're at the point now where they won't accept payments (even if they did, there's no gurantee it would be applied to your account) and even if you are able to settle for a percentage, they'll want it in a lump. So...your best option at this point is learn your rights and use them to trip the CA over their own ignorance.

Good luck...we'll help if we can....

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Thank you for your replies. I did contact New Horizon, who denied that they made a mistake but are trying to work with citicard to buy back the loan.

If I get stuck with this collection agency, this is what I have to deal with. I found this blurb about them on the Bud Hibbs website:

"Alegis Group LP was created in July 1992 is a wholly owned subsidiary of Sherman Financial Group LLC"

"Talk about a sham, this is the new Enron scam of the century. A Houston debt collection agency called Alegis ( National Enterprise is part of them) purchased portfolio's of 'charged-off' debts from various banks (i.e. MasterCard, Visa, Discover, etc.) for approximately 4-6¢ on the dollar. Then, like a Las Vegas high roller, is gambling that their 'goons' can convince (i.e. threaten intimidate, harass) debtors to pay up, based on their highly inflated figures.

Sherman is Alegis, Alegis is Sherman, even with the branch office they opened in Greenville, SC. The main factor in dealing with a 'Scavenger Debt Buyer's' (SDB), that will work in your favor is to DISPUTE all accounts within the first thirty days of receiving written notice. "

I suppose all collection angencies operate in a similair fashion. Sigh.

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You need to do a lot more reading here. I may be wrong, but I think NES in this instance is just acting as a "collection agency" (CA). Neither they, nor Horizon has purchase the debt from Citibank. The Bud Hibbs topic your talking about is when NES has bought the debt and then becomes a "junk debt buyer" (JDB). CAs and JDBs are two different things...you deal with each a little differently.

So...back to what I originally said...fire Horizon and use the DV process and NES and buy some time.

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Thats what I thought too, but I called Citicard first and asked them if they had assigned the debt to National Enterprise or sold it to them, and they said they sold it. I asked them how much they sold it for, and they said that they don't have to answer that because of privacy laws.

I wonder if I can DV them and make them answer that question, the same way I would DV the collection agency?

My DV letter to National is ready to go. No mail delivery today, so I have to wait until tomorrow to send it.

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You really can't beleive anything an OC, CA, and / or JDB tells you on the phone. OC's are usually pretty good unless they're trying to scare you into something, but CAs and JDBs lie because that's the way they earn their money.

But...yes...by all means, DV NES but make sure you send it CMRRR so you have proof they receive it.

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Guys, advising anyone to dispute a Citi account that has not been sold is terrible terrible advice. If you dispute a Citi collection account expect to get a summons. Not validation.

Any type of Cease and Desist or Dispute sent to Citi you are asking for trouble. Trust me on this one.

New Horizon is a CCCS not a credit repair or debt elimination. One huge problem with these companies is the way they bill and their half assed way of negotiating with the OC. They send the monthly out whenever they get around to it and normally, it is late causing the account to charge off and since neither party notifies each other about the screw up the account charges off and then no one wants to take blame and no one wants to get their fat a$$ out from behind their desk to see what happened.

New Horizon needs to step in here and make the adjustment for you and get the account recalled from NES and make sure the CO and all the late pays are removed. Call the BBB and file a complaint right now.

I despise CCCS for this very reason. Its their fault. Most pay once a month because they are small firms and what happens is, most accounts get paid late and end up charging off like what you are dealing with.

This is New Horizons job. They should be doing what you are paying them to do.

Any further questions please do not hesitate and if anyone needs more info on why you should not dispute any Citi account please feel to ask.

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As usual, sifxpert's advice is closer to the dark side. I'm still not sure where he fits in the whole universe here...but....

Vderon: The problem at the moment is that CitiBank has made it clear that they won't play with Horizon. They said they sold the debt. I don't think I'd beleive them...they usually don't sell a debt that's less than 120-150 days past due...but you're only choice at this point is to DV NES and make them prove where they stand.

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Once again, I am very sorry that I appear to be on the Dark Side but I have worked for CCCS companies before and I know very well what Citi's policies are. If he sends a DV to NES he will get served.

He has been paying New Horizon who has not been handling his account the way it should be. When a CCCS takes over an account for a client they deal negotiate a monthly payment, interest, and payment date.

New Horizon was not making his payments on time. Therefore, he should not have to deal with NES or Citi. New Horizon screwed up and they will remedy the situation. THey have a specific dept. that deals with this very situation. THey should at least.

Willing..I just posted a new thread about DV's and CD's with Citi. If you still are not convinced I am not on the dark side PM me or Docdon and ask who I really am.

I have read many of your posts and you do offer great advise and I certianly do not want to go back and forth with you but your perception is way off about me. I would prefer we nip this in the bud and move on.

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My thinking is if members choose to go that route, it's not up to us to thwart their plans... settlement can be a potential part of a credit turnaround plan for some.

Now that we've gotten the solicitation issue out of the way, I think both sides can learn something from each other.

Besides, if anything is not on the up-and-up, our members are pretty good about letting everyone know.... :wink:

My 2 cents...

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Vderon

Regarding CA. I currently have a Citicard and I'm talking to you with expereince here. I also was dealing with citicard but citi wasn't contacting me. I collection agency was writing me. Since New Horizon messed up your account you need to get the collection agancy off your back so what you need to do is DV with the collection agency. Citi will respond but not with a summons. They will just provide you proof that the account is yours by mailling you statements. but they will not sue... All your asking is for proof that the account is yours. your doing nothing wrong with validating. That's what I did to the collection agency and citi wrote back... So personally, you have to DV the CA and let New Horizon do there job. If they don't, I agree with sifxpert, and contact the BBB (hey, thats the only thing i agree with sifxpert, lol).... AND ESSENTIALLY, DO NOT DEAL WITH CCC... THEY ARE NON-PROFIT BECAUSE THEY WANT TO MAKE THERE ON MONEY AND KEEP IT...

Good Luck!

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Thanks you everyone for your input. I called New Horizon and insisted that they represent me with Citicard on this matter, and I warned them I will hold them responsible for this charge-off because of the late pays. I like the advice about contacting the BBB.

And I did dv National Enterprise Systems. After finding out what crooks they are, I can't imagine sending them any money for any reason. No matter what happens, they are going to have to sue me to get a nickel. I think a reasonable judge will be able to see that I was more than willing to work with Citicard, but not with a company that goes by about 5 to 7 different names, calls me 4 to 5 times a night, getting progessively more hostile, and one that is known to buy debt for 4 to 6 cents on the dollar and then harass the crap out of uneducated people to collect . I'll take my chances.

The nice thing about having bad credit is that the "this will ruin your credit" threat doesn't really scare me right now. :-)

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Hey, all I can do is try to offer advise. I never expect someone to take my word whole heartedly.

I must say though...someone who posts at least 10-15 different times all over this site for help on their Citi clearly has no idea what the hell they are talking about and who clealry displays their ignorance should definitely not be advising anyone else on how to handle their Citi...wouldn't you agree their Romeo?

I quote...

I'm not fixing to pay on the interest... I tried to settle for a 1000. I sent the letter to 2 citibank locations and never recieved nothing... It has been over 3 month and nothing... What should I do next. Should I write a letter to the reporting agences requesting to delete the account stating it's not mine.. Please help!!!

Great idea!! Send a few letters offering to settle waving the flag "yes this is my debt" and then send others shortly after saying this is not my debt.

Very smart. You should be fixing to sittin back there now and read on a little now ya hear.

8-):<img src=:'>

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I do have another question- is it possible to take legal action against the CCS for the late pays that resulted in the charge-off? My guess is that they word their agreements vaguely to avoid the possiblity of being sued, but I'm looking at all my options.

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